ASIC has issued infringement notices to two self-managed superannuation fund (SMSF) advisory services for misleading claims made online.
Esuperfund was fined $30,600 after the corporate regulator issued it three separate infringement notices pertaining to false or misleading online advertising.
The administrator was found to have “inaccurately represented” the fees and costs associated with establishing an SMSF, as well as misrepresenting “the costs and benefits of SMSFs compared to retail and industry superannuation funds”, ASIC said.
The third infringement related to an advertisement that “falsely represented” that ASIC had reviewed Esuperfund’s operations to ensure compliance with licensing obligations.
Each infringement occurred between 31 January and 8 May and carried a fine of $10,200.
Your Super Accountant was also issued with a $2040 infringement notice penalty after ASIC determined it made “potentially misleading statements about the cost of setting up a SMSF”, ASIC said.
The regulator said it was concerned about statements on the Your Super Accountant website representing free fund set-up.
“The conditions for fund set-up required investors to pay $200 upfront – 20 per cent of the annual administration fee – to be eligible for ‘free’ fund set-up,” it said in a statement.
The website homepage did not disclose any conditions.
“Some terms and phrases – such as ‘free’ – have such a strong connotation for consumers that particular care should be taken so that investors are not misled,” ASIC deputy chairman Peter Kell said.
“Setting up an SMSF is an extremely important financial division and consumers should clearly understand the set-up costs involved.
“ASIC has a particular focus on misleading claims that a financial product or service is ‘free’, as this may lead consumers to make inappropriate financial decisions.”
Both Your Super Accountant and Esuperfund have taken steps to correct their websites.
